Answer:
$2,250,000
Explanation:
Preparation for the lower portion of the 2021 income statement
CALIFORNIA MICROTECH CORPORATION
Partial Income Statement
For the Year Ended December 31, 2021
Income from continuing operations before income taxes 7,800,000
Less Income tax expense 1,950,000
(25%*7,800,000)
Income from continuing operations 5,850,000
Discontinued operations:
Loss from operations of discontinued component (4,800,000)
Income tax benefit, 1,200,000
(25%*4,800,000)
Loss on discontinued operations (3,600,000)
Net income (5,850,000 - 3,600,000) $2,250,000
Therefore the Net income will be $2,250,000
